Shares of Jio Financial Services could draw fresh investor attention after brokerage Motilal Oswal Financial Services initiated coverage on the stock with a ‘buy’ rating, implying an upside potential of about 36 percent from current levels.

Jio Financial Services shares have gained about 5 percent over the past one year, giving the company a market capitalisation of roughly Rs 1.5 lakh crore. Motilal Oswal has set a target price of Rs 320 on Jio Financial Services stock, against the current price of Rs 236.

In its initiating coverage report, Motilal Oswal described the company as a technology-led financial services platform spanning lending, payments, asset management, insurance, and wealth management, built around the digital and retail ecosystem of the Reliance group.

Jio Financial riding on Jio Telecom and Reliance backbone

“Jio Financial Services (JIOFIN) is being architected as a diversified, technology-led financial services platform,” the brokerage said. It added that the company aims to operate across multiple financial segments while leveraging the group’s vast distribution network.

According to the note, the core investment thesis rests on the company’s ecosystem advantage, including access to Jio’s (telecom) subscriber base of more than 500 million users and Reliance’s extensive retail footprint. This can significantly lower customer acquisition costs compared with traditional financial institutions.

Jio Credit to be the primary growth engine

Motilal Oswal expects lending arm Jio Credit to emerge as the primary growth engine, supported by early traction in secured retail products such as home loans and loans against property. The brokerage noted that Jio Credit’s assets under management had already crossed about Rs 190 billion as of December 2025, reflecting rapid scale-up in the lending business.

The brokerage also highlighted the company’s ability to leverage data and digital platforms to build a scalable financial ecosystem. “The core investment thesis for JIOFIN centres on its ecosystem-led operating advantage… enabling hyper-personalised credit underwriting through proprietary AI models,” the report said.

Motilal Oswal expects consolidated net profit to grow at a compound annual rate of about 48 percent between FY26 and FY28, driven by the scaling up of lending, payments, asset management, and insurance businesses. But, it cautioned that near-term earnings and return metrics may remain modest as the company continues to invest in building its operating franchises across lending, payments, and investment products.

Over the longer term, Motilal Oswal believes the company offers a structural growth opportunity as India’s financial services ecosystem expands and digital financial adoption deepens. The brokerage’s sum-of-the-parts valuation framework assigns value to businesses, including Jio Credit, payments solutions, insurance broking, and the Jio-BlackRock asset management joint venture, resulting in a target price of Rs 320 per share.